South Africa Market Review
- South African markets closed in the red yesterday, led by losses in financial and mining sector stocks.
- Lenders, Investec, Nedbank Group (JO:NEDJ), Standard Bank Group (JO:SBKJ) and Capitec Bank Holdings (JO:CPIJ) dropped 5.1%, 1.9%, 1.3% and 1.2%, respectively.
- Platinum miners, Impala Platinum (JO:IMPJ), Northam Platinum (JO:NHMJ) and Anglo American Platinum (JO:AMSJ) shed 4.0%, 2.2% and 1.8%, respectively.
- Retailers, Mr Price Group (JO:MRPJ), Clicks Group (JO:CLSJ), Cie Financiere Richemont S.A. (JO:CFRJ) and SPAR Group (JO:SPPJ) declined 3.2%, 2.2%, 0.9% and 0.8%, respectively.
- Diversified mining companies, Exxaro Resources (JO:EXXJ), African Rainbow Minerals (JO:ARIJ) and Anglo American (JO:AGLJ) fell 1.7%, 1.6% and 0.7%, respectively.
- Pharmaceutical companies, Life Healthcare Group (JO:LHCJ) and Netcare (JO:NTCJ) eased 1.5% and 1.4%, respectively.
- The JSE All Share index declined 1.4% to close at 77,547.01.
UK Market Review
- The UK market finished firmer yesterday, amid weakness in the British Pound.
- Building materials company, CRH (LON:CRH) jumped 8.0%, after the company reported higher sales and profits in FY22.
- Energy companies, BP (LON:BP) and Shell (LON:RDSa) advanced 2.0% and 1.6%, respectively.
- Pharmaceutical companies, Dechra Pharmaceuticals (LON:DPH) and Hikma Pharmaceuticals (LON:HIK) added 1.7% and 1.4%, respectively.
- On the other hand, insurance company, banking firms, HSBC Holdings (LON:HSBA), Barclays (LON:BARC) and Lloyds Banking Group (LON:LLOY) shed 3.3%, 1.5% and 1.2%, respectively.
- Real estate companies, Barratt Developments (LON:BDEV), Berkeley Group Holdings (LON:BKGH) and Land Securities Group (LON:LAND) declined 3.0%, 2.0% and 1.0%, respectively.
- The FTSE 100 index rose 0.4% to close at 7,944.04.
US Market Review
- US markets ended higher yesterday, after Atlanta Federal Reserve President Raphael Bostic favored "slow and steady" pace of interest rate hikes.
- Technology company, Salesforce (NYSE:CRM) surged 11.5%, after the company projected higher revenue in 1Q23 and doubled its share buyback to $20.00bn.
- Departmental store company, Macy’s (NYSE:M) gained 11.1%, after the company reported upbeat FY22 results and issued positive outlook for 2023.
- On the contrary, Best Buy (NYSE:BBY) fell 2.1%, after the company issued a downbeat annual guidance.
- The S&P 500 index fell 0.8% to settle at 3,981.35, while the DJIA index advanced 1.0% to close at 33,003.57.
- The NASDAQ index climbed 0.7% to end the trading session at 11,462.98.
Asia Market Review
- Asian markets are trading higher this morning, tracking overnight gains on Wall Street.
- In Japan, pharmaceutical company, Daiichi Sankyo (TYO:4568) has gained 4.2%.
- On the flipside, electric wires and cables company, Fujikura (TYO:5803) has declined 1.4%.
- In Hong Kong, glass products company, Xinyi Glass Holdings (HK:0868) has advanced 3.2%.
- On the other hand, insurance company, China Life Insurance (HK:2628) has shed 0.7%.
- In South Korea, insurance company, Hanwha Life Insurance (KS:088350) has dropped 6.4%.
- On the contrary, chemical company, Hannong Chemicals (KS:011500) has surged 15.7%.
- The Nikkei 225 index is trading 1.5% higher at 27,904.19.
- The Hang Seng index has gained 0.7% to trade at 20,574.08, while the Kospi index is trading 0.1% higher at 2,430.72.
Commodities
- At 06:00 SAST today, Brent spot prices rose 0.1% to trade at $84.3/bl.
- Yesterday, Brent spot prices fell 0.1% to settle at $84.25/bl.
- Yesterday, the Illinois North Central No.2 Yellow corn spot prices fell 0.3% to $6.5375/bushel.
- At 06:00 SAST today, gold prices advanced 0.2% to trade at $1,838.95/oz. Yesterday, gold marginally declined to close at $1,835.87/oz, as a stronger dollar and a rise in the US Treasury yields dented demand for the safe haven yellow metal.
- Yesterday, copper declined 1.7% to close at $8,928.10/mt. Aluminium closed 1.2% lower at $2,355.25/mt.
Currencies
- Yesterday, the South African rand weakened against the US dollar. In the US, the number of initial jobless claims unexpectedly declined in the week ended 24 February 2023.
- The yield on benchmark government bonds rose on yesterday. The yield on 2026 bond rose to 8.60%. Further, the yield on the longer-dated 2030 issue rose to 10.17%.
- At 06:00 SAST, the US dollar is trading marginally lower against the South African rand at R18.2006, while the euro is trading 0.1% higher at R19.3039. At 06:00 SAST, the British pound has gained 0.2% against the South African rand to trade at R21.7774.
- Yesterday, the euro declined against most of the major currencies. In the eurozone, the unemployment rate remained unchanged in January.
- At 06:00 SAST, the euro advanced 0.1% against the US dollar to trade at $1.0606, while it has weakened 0.1% against the British pound to trade at GBP0.8864.
Economic Updates
- In Italy, the unemployment rate unexpectedly rose to 7.9% in January, compared to 7.8% in the prior month.
- In Italy, the consumer price index (CPI) advanced 0.3% on a MoM basis in February, compared to a rise of 0.1% recorded in the previous month. Markets were anticipating the CPI to advance 1.4%.
- In the eurozone, the preliminary consumer price index climbed 0.8% on a MoM basis in February, compared to a drop of 0.2% recorded in the prior month.
- In the eurozone, the unemployment rate remained unchanged at 6.7% in January, compared to market expectations for a drop to 6.6%.
- In the US, initial jobless claims unexpectedly dropped to a level of 190.00K in the week ended 24 February 2023, compared to market expectations for a rise to a level of 195.00K. In the previous week, the number of initial jobless claims had recorded a level of 192.00K.
- In Japan, the unemployment rate dropped to 2.4% in January, compared to 2.5% in the previous month.
- In Japan, the Jibun Bank services PMI rose to a level of 54.00 in January, more than market expectations for a rise to a level of 53.60. The services PMI had recorded a level of 51.10 in the previous month.
- In China, the services PMI unexpectedly rose to a level of 55.00 in February. The services PMI had recorded a level of 51.10 in the previous month.
- In Australia, the S&P Global services PMI rose to a level of 50.70 in February, more than market expectations for a rise to a level of 49.20. In the prior month, the services PMI had recorded a revised level of 48.60.
Corporate Updates
South Africa
- FirstRand Limited (JO:FSRJ): The financial services company, in its 1H23 results, indicated that its net interest income increased to R36.66bn, compared to R32.97bn posted in the corresponding period of the previous year. Its diluted EPS rose 13.7% from the same period of the prior year to 320.70c.
- Grindrod Limited (JO:GNDJ): The logistics company, in its FY22 results, stated that its revenue increased to R5.88bn from R3.42bn posted in the previous year. Its diluted EPS stood at 90.00c, compared with 26.20c recorded in the previous year.
- Impala Platinum Holdings Limited (JO:IMPJ): The platinum mining company, in its 1H23 results, indicated that its revenue rose to R57.80bn from R55.62bn posted in the corresponding period of the previous year. Its diluted EPS fell 2.6% from the same period of the prior year to R16.44.
- Sanlam Limited (JO:SLMJ): The financial services company, in its FY22 trading update, revealed that it expects its diluted EPS to be between 545.00c and 590.00c as compared with 454.00c recorded in the prior year. Also, it expects HEPS to be between 411.00c and 455.00c as compared to 433.00c recorded in the previous year.
- Nedbank Group Limited (JO:NEDJ): The banking company, in its trading update for the twelve months ended 31 December 2022, revealed that it expects its EPS to be 24.0% and 29.0%, higher as compared with R23.17 recorded in the previous year. Also, it expects its HEPS to be 17.0% and 22.0%, higher as compared with R24.10 recorded in the previous year.
- Santam Limited (JO:SNTJ): The insurance company, in its FY22 results, reported that its gross written premium advanced 17.8% from the preceding year to R49.63bn. Its diluted EPS stood at R18.03, compared with R24.78 recorded in the corresponding previous year.
- Curro Holdings Limited (JO:COHJ): The schools and educational services company, in its annual results for the year ended 31 December 2022 revealed that its revenue from contracts with customers rose 17.3% from the preceding year to R4.16bn. Its diluted EPS stood at 39.90c, compared with 43.30c recorded in the corresponding previous year.
- Oil gains again as Chinese factory figures please markets: Oil edged higher, though gains made on signs of a strong economic rebound in top crude importer China were kept in check by fears about the effects of potential increases to European interest rates.